26 June 2013 09:42 [Source: ICIS news]
SINGAPORE (ICIS)--China’s Panjin Northern Asphalt plans to start up a 400,000 tonne/year Group II base oils plant at Panjin in Liaoning province in April 2014, a local base oils trader said on Wednesday.
The company has already been conducting trial operations at the plant, the trader said.
However, the company will not run the plant in full capacity until April 2014 in view of ample domestic supply of Group II grades in China, the trader explained.
The plant will consume feedstock supplied by North Huajin Chemical Industries Group and will mainly produce Group II N100, N150 and N400 base oils, the trader said.
“Specifications of current base oils outputs are quite satisfactory,” the trader said.
Group II supplies are expected to be sufficient in northeast China after the start-up of Panjin Northern Asphalt’s new plant, which will leave less market space for other domestic Group II suppliers, the trader added.
PetroChina was the sole Group II producer in northeast China with a nameplate capacity of 200,000 tonnes/year.
Panjin Northern Asphalt and North Huajin Chemical Industries Group are subsidiaries of China North Industries Group.
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